Everybody finds themselves a bit low on funds every now and again. For the most part things can be stretched out until payday. Sometimes though, when an emergency strikes you need cash straightaway. If your bank can’t or won’t help you the next step is to look at payday loan lenders. It is a more expensive option but, if you are careful you can get a reasonable deal to help you in the short term. Follow these tips to help you make the right decision based on your requirements.
If this is the route you choose you should make sure to note on your calendar when the loan is due to be repaid. This can save you falling into trouble with ridiculously high penalties and fees that come with being late.
Make sure you are aware of all the fees that go with your loan. You must have the full amount of the loan plus the interest and fees in your account on the day the loan is due to be paid. Don’t be fooled into thinking that you can get away with not paying because it will cost you a lot more in the long run. Keep this in mind – most pay day loan repayments usually add up to around 200% of the loan value.
Payday loans are cash advances and they are only for emergencies. They are not meant to be used as a way of making the money meet the month. You may be better off speaking with your bank or looking for a long term loan if you can, to avoid the abnormally high interest rates that go with payday loans.
Payday loan companies ask for a lot of information. You will need a few telephone numbers to hand, including that of your employer. They will also want you to provide details of at least 3 people for references.
Make sure you are dealing with a reputable company. They all charge high interest rates and fees. You can always find reviews of these companies online and you should never deal with a company that hasn’t been in the business for at least 5 years.
Before you take the plunge make sure that a payday loan really is what you need. Try every other avenue first and do not use payday loans to pay off other debts – they really are only for emergencies.
Research thoroughly to make sure you use the best lender with the best deal on interest and fees. You have the option of high street lenders or online ones – try not to apply online, always ring them up. If this is your first loan you may even be eligible for a discount with a few of the lenders.
Payday loans are an expensive option and the entire loan process is extremely fast. If you are not entirely sure that this is the best solution for you then don’t apply for one. Once your application has been accepted you start to incur fees and you are committed to the loan.